Monthly Archives: July 2010

Looking Good While Saving Money

In an earlier post, I talked about always bargaining and that you can always haggle with people who are taking your money. This happens most often for my phone bill, but also happened before renting our apartment as we were able to convince the landlord to reduce the rent. When we moved in, we were able to get very cheap Internet and cable, loaded with extra features that they agreed to add on after we had them drop the price significantly.

Now, I’m starting to put that into practice, and I built up the courage to negotiate with my barber. I just moved into the area and had no loyalty to any barber, but the first one I went to did a great job. Corfu Barber Shop is a tiny little place hidden underground. It’s a real experience: there are sports magazines and some other dirty magazines sitting on the shelf, but it seems like nobody reads them because there’s never a line. John doesn’t speak much English but is a real perfectionist. He does a great job on my neck and I got one of my best haircuts there, so of course, I was going to go back.

Like many barbers in the area, he charges $18, and with tip, it comes out to $20. Usually, I get my hair cut shorter than necessary, and it takes a week to look good. Then 4 weeks later, it’s time to get it cut again.

I’ve been considering negotiating with my barber for a few weeks now, and when it was time to go in, I had a plan. I did some calculations and decided on a course of action. For awhile, I’ve wanted to get my hair cut every month so that it never gets too long and I can avoid that awkward week when people can see my scalp because my hair is too short.

I proposed paying $15, including tip, for each haircut, and in return, offering him two things: First, I agreed to come only to him, which guarantees him my business, something I assumed was very valuable to him, and second, to come in every four weeks instead of every six weeks, giving him consistent business.

Here is the difference in cost:

As you can see, the cost difference comes out to about $13, which over the course of the year is nothing to brag about. However, the real value comes from the fact that I can always look sharp and have a shaved neck. I no longer have to worry about being made fun of when I get a haircut and I also don’t have to put up with long hair and the hassle of “doing” it every morning. Plus, I probably save a few pennies by using less shampoo.

Most importantly, this experience gave me the confidence to haggle the next time, too.

Child Hurt Asking Is Brother Of Boy Who Cried Wolf

That’s right, nobody has ever been hurt asking. It never hurts to ask. Plain and simple. It’s been proven time and again.

How do I know? Because I’ve tried over and over and over again and not once have I gotten a scraped knee, bruised a rib, or needed a trip to the ER.

In fact, when asking pays off, it can make a huge difference and in many cases, you’ll be pleasantly surprised by the results.

As you know, I got an iPhone awhile back and I think that it’s great to spend money on the things you care about, and that it’s the things you don’t care about that you should cut back spending on.

When I bought my iphone, I bought one app: The MLB At Bat app so that I could watch my Yankees no matter where I was. Best purchase ever.

But other than that, I haven’t spent money on any apps. $0. For anyone with an iPhone, you know that’s impressive. I could easily spend $30 a month just trying out apps and wasting my time away. But I told myself that my iPhone would cost $30/month and I’m going over that would be cheating myself.

So what do I do when I find an app I think would be super cool but don’t think it’s worth the money?

I do one of two things: I search for promocodes, which developers give out to encourage people to use and rate their app, or I go directly to the developer and just ask for a free copy!

Pretty simple, right? And guess what: most of the time it works! I’ve been denied a few times, and I’ve had to pass on apps that I think would be the coolest way to spend mindless hours, but I’ve also been treated to a few damn cools apps.

What’s the harm in asking? If they say no, you’re right back where you started! It might be a little embarrassing, but over email, they don’t know who you are, they’ll never meet you, and if they do, THEY’LL be the one’s embarrassed because they were the ones who didn’t want to help someone out.

Readers, what is the coolest thing you’ve ever received just by asking? Has anyone been injured by asking?

Discover Bank Review

For awhile, I’ve promoted ING and SmartyPig as my bank accounts. It’s true, I love earning my 2.15% interest rate. If you like earning a top rate on your savings, skip the rest of this post and read my SmartyPig review because like me, you’ll fall in love.

But if you don’t like going with a site with a silly name or with a bank you’ve never heard of, then Discover bank may be for you.

To be clear, I still love my ING checking account. It’s so easy to use and one of these days I should get around to writing a glowing review because I’m a huge fan. It’s the savings account I’m not a huge fan of.

When I signed up for the ING saving account, my interest rate was at 1.40%, which was pretty decent. Then the savings dropped down to 1.25%, which definitely doesn’t excite me. When I heard about SmartyPig I jumped on board, but there are other options, and right now, Discover looks like a damn good one.

Why? Because they offer a 1.35% interest rate on savings accounts, which is far better than many other options out there. For example, it’s over 5 times greater than the national rate for savings accounts. Not a bad start.

Discover Bank Products

Many of you have heard about Discover for their credit cards, but they actually offer a bunch of other financial products, all FDIC insured.

Online Savings: This is what interests me most. Although you need a minimum of $500 to open an account, there are no minimum daily balances, no fees, and they’ve got that nice 1.35% interest rate.

Discover Bank also offers Money Market accounts, Certificates of Deposit, and IRA CDs.

The Money Market accounts have a minimum balance of $2,500. They are very similar to high interest checking accounts, which the exception that there is a limited to 6 withdrawals per month. The advantage of money market accounts is that the money is easier to access than with savings accounts. Click here to see the current money market interest rates.

Certificates of Deposit start at 0.65% for 3 months, move to 1.50% for 12 months, 3.00% at 5 years, and caps off at 3.50% at 10 years. That’s pretty competitive compared to other banks I’ve seen. I don’t want to list all their rates, so click here for their current CD rates.

IRA CDs are a safe and conservative to start an IRA. If you like the idea of an investment with a guaranteed return and no risk, an IRA CD may be for you. Discover offers CDs up to 10 years in length. Click here to view their current IRA CD rates.

One of the most important factors in choosing a bank is customer service. Discover has 24/7 live customer service representatives, which is a huge plus. From others, it sounds like they’re prompt and courteous, which is exactly what I’m looking for.

Readers, would you consider Discover as a bank? Or do you prefer to chase the high 2.15% interest rate of SmartyPig?

Motivational Story: From Dog Walking to Ivy League

Remember “Sally” from a few months ago? She was rejected from a job because she asked her lawyer father for legal advice. How dare she! Anyway, she’s back with an amazing story about how hustling can get you pretty damn far. In her own words…

Since my first day of Kindergarten, my parents, teachers, and counselors all emphasized that if I tried hard enough, I could achieve anything. Hard work and determination would land me at the front doorstep of my goals.

My mother always told me to eat a good breakfast, and I would succeed. I listened, ate up, and succeeded my way through graduation. My parents took pictures of me smiling on the front steps of the library, and we all thought I had really done it.

So how did I go from graduating from the Honors program at the University of Maryland with a 4.0 GPA, Phi Beta Kappa to scooping dog poop, waiting tables, and house sitting?

After graduating last year into one of the toughest economies, I was sent with my newly printed resume to pursue hundreds of coveted entry-level positions in disinterested offices. They had bigger fish to fry, and bigger, more experienced fish in the sea swimming by me with their tentacles out. As I pitched my talents to interviewers (if I was lucky enough to get that far) and explained why anthropology was such a great choice in major, I saw in their eyes what every one of them was thinking: “That’s cute.”

After a couple of months of wasting away my funds on an apartment I could not afford and work clothes I certainly did not need, I put the box of tissues aside, squeezed my stacks of cover letters into a large storage unit, and took to the streets. I put on my walking shoes and begged for jobs. You need a waitress? Well, here’s my resume. I’m an anthropology major.

I house-sat, waitress-ed, office managed, and found my not-so-true calling in dog walking. My sixteen hour days included three changes of wardrobe, bad tips, and all the joys that come with dog walking. I never imagined having to clean up after dogs after getting a college degree, but it paid enough to keep my checking account positive. I was still sending out resumes somewhere in between my odd jobs. In a bad economy, people still need to eat, their dogs still need to go to the bathroom, and I needed to keep moving.

Finally, in April, I applied and was accepted to the University of Pennsylvania’s Masters in Social Work program. I don’t see it so much as running from the job market as much as I am using the knowledge I gained while being ostracized from it. I was forced to finally think about where I really wanted to send my resume, instead of just what looked good. I learned that success was measured by more than good grades, and I figured out what personal success really meant to me. Take that recession.

There are 359 hits when I search my Gmail account for sent resumes over the past year. Granted, many of these are What-Am-I-Doing-Wrong-Emails, but they are still a testament to the amount of personal manpower required for this task. I cringe at the thought of how many of these embarrassing emails were actually read.

At the end of it all, I think mostly to another poster in an 8th grade science room of a cartoon frog in a pelican’s mouth. The pelican is nearly swallowing the frog whole, but that little frog keeps its hands wrapped tightly around the pelican’s throat in a death choke, with a quote under it reading, “Never Ever Give Up.” I always related to this more than the Little Engine That Could, although the message is clear from both. Stick to the golden plan even when things look down. And in the meantime, pass the Cheerios.